Joint venture unveiled to build waste to energy plant
Bingley-headquartered Powerhouse Energy Group is entering into a joint venture to enable development of its first full scale waste plastic to hydrogen facility outside the UK.
It has agreed heads of terms with Hydrogen Utopia International (HUI) for the proposed development of a site at Lanespark in County Tipperary, in the Republic of Ireland.
The two companies have agreed in principle to establish a joint venture vehicle owned equally by each firm, to which they would contribute development costs for the Lanespark Project on a 50:50 basis.
As part of the deal, it is anticipated Powerhouse Energy will pay HUI a non-refundable payment of £400,000 in cash, and advance to HUI a loan of £600,000.
Powerhouse Energy, which is pioneering technology to convert non-recyclable waste into low carbon energy, says it will consider collaborations with third parties similar to this on future projects.
Keith Riley, interim chairman of the business, said: “This is an important strategic step forward for us.
“Not only does it provide a new project for Powerhouse’s hydrogen production technology, it also represents our first major project outside the UK, and the first time Powerhouse has been party to the special purpose vehicle that will develop and construct the facility.
“We will have a seat at the table in the project decision making.”
Paul Drennan-Durose, CEO, added: “Powerhouse Energy must create a quality of choice on projects. In this early stage of commercialisation there is a need to consider the unusual, and to have a more flexible business model.
“The Republic of Ireland is also a good fit for Powerhouse at this stage in its evolution, its close enough to avoid an overreach and it is anticipated that the solution will be of great benefit to local communities, the private sector, and to the state.”